An emirate is a combination of 7 states. Each state is governed by its own set of laws and has a separate ruler. This is particularly true regarding property laws.
For example, in Dubai, property issues are subject to local laws. The provisions in local laws determined the rise in rent for the rental property.
Similarly, every emirate has its different laws. In Dubai, the main regulatory body that deals with the property is called Real Estate Regulatory Agency RERA.
It is constituted as a regulatory part of the Dubai land Department DLD. RERA is responsible to govern the relationship between the landlord and tenant.
They follow the Dubai laws that regulate tenancy issues. In recent times RERA has introduced the Rental Index. This constitutes a proper system to allocate an average rent.
They are based on the allocated averages. The system is designed to generate legal limitations for a rental rise. Check these systems with the Top Lawyers in Dubai.
In Dubai, RERA is also responsible for updates to the Rental Price Index. This included a database that documents the average rental prices for all the properties in Dubai.
Continually, this index is upgraded on an annual basis. This is applied to all rental transactions. Rental Index allows users to evaluate the rise in rent.
Besides, it also finds out the average market rent of a given area anywhere in Dubai. This is a completely free service offered to the residents of Dubai. It facilitates the users in many ways.
Moreover, it assists in maintaining transparency and a balance in the market regarding the rental rise on yearly basis. There is a legal upper limit that is applied to the rental increase.
This is governed by the provisions of the Dubai Decree. Furthermore, there are certain percentages allotted to the given property area in Dubai.
This depends upon various factors including the fixed average rent for the specific area under RERA. Under the law, the maximum rate of the rise in the rental amount is determined upon renewal of the property lease.
When a tenant faces an unjustifiable rise in the rental, he has the option of legal action. He can object that that rise must be according to the norms of the applicable laws.
He can prove that the rise is not aligned with the applicable laws. On the other hand, he can also object if the rental rise is forced upon them. There is a general rule that at least a 3-month advance notice should be dispatched to the tenant before the rental rise.
Firstly, it is important to check that either the rental increase is legal or not. Secondly, they should monitor whether either landlord has followed the proper legal procedure or not.
Thirdly, the 3 months advance notice is seen before the proposed changes are applied. It is crucial to inform the tenant in advance regarding the rental increase. He must be given plenty of time to vacate the property if needed due to any reason.
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Last but not the least, the Article here, is just for the sake of knowledge. Therefore no liability is taken because information provided can be outdated or OLD as well.
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